Bill Ackman’s Pershing Square is forming a new entity to merge with Howard Hughes Holdings, offering current holders $85 per share. The move aims to address the company’s poor stock price performance over the past 14 years.
Pershing Square owns approximately 38% of Howard Hughes and has invested $250 million in the company since 2010. Despite this significant investment, Pershing’s return on investment is only 2.2% compound annual return. The company has also paid zero dividends since its inception.
Ackman expressed disappointment with Howard Hughes’ stock price performance, despite the company’s progress in various business areas over the past decade. He proposed forming a new subsidiary of Pershing that would merge with Howard Hughes, allowing shareholders to receive more than 60% of their merger consideration in cash at $85 per share.
Under the proposed deal, Ackman stated that there will be no changes to the company’s organization, employees, or long-term strategy. The current leadership team led by CEO David O’Reilly will continue to manage the company.
Source: https://www.cnbc.com/2025/01/13/bill-ackmans-pershing-square-offers-to-take-over-real-estate-developer-howard-hughes.html